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High Oil Prices Drive Up PVC Prices

March 25, 2022

Concerns about supply risks brought about by the situation in Russia and Ukraine continued, and international oil prices continued to rise, causing polyvinyl chloride (PVC) prices to rise along with crude oil prices. In the later period, China’s domestic PVC demand will gradually recover to the peak season level, and PVC will usher in a price increase.
80% of the domestic PVC production capacity adopts the calcium carbide method. However, overseas PVC all use the ethylene method, so PVC, as one of the chemical products, has a linkage effect with crude oil. When crude oil rises sharply, PVC rises with crude oil prices. However, at present, the PVC inventory is relatively high, and the spot pressure is relatively large. The negative feedback from the demand side will make it difficult for PVC prices to keep up with crude oil. The rise of PVC at this stage is a passive rise based on rising costs, so the impact on PVC is relatively limited.